Bankless State of the Nation #4 - HUNGRY (BUYING THE ETH NARRATIVE, $2B IN DEFI, AND THE DEFI VORTEX)
Jul 7, 2020
Luke Martin, a narrative investor and crypto trading expert from VentureCoinist, joins the discussion to dissect the latest trends in Ethereum and DeFi. The conversation dives into Ethereum’s rise as a narrative investment and what $2 billion locked in DeFi signifies. They explore the complexities of the DeFi Vortex, the implications of yield farming, and how innovative protocols are transforming the landscape. Martin sheds light on the future potential of Ethereum and the interconnected nature of decentralized finance.
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Narrative Investing vs. Fundamentals vs. Trading
- Narrative investing focuses on identifying and capitalizing on emerging trends in the crypto market.
- This contrasts with fundamental investing, which prioritizes underlying value and technical trading, which relies on chart analysis.
DeFi vs. ICO Boom
- ETH's price hasn't seen the same parabolic growth as in 2017 with the ICO boom, despite the DeFi hype.
- One key difference is that ICOs required ETH, while DeFi allows participation with various assets.
Narratives to Watch
- Watch for the ETH narrative, yield farming, staking, and DeFi as potential investment areas.
- Also, observe Bitcoin's correlation with the S&P 500, as a decoupling could be bullish.